1. Field of the Invention
The present invention relates to a method of performing bidding in an auction conducted on on-line such as on the Internet.
2. Statement of the Problem
Internet auctions 10 are becoming increasingly popular. One of the most popular is provided by ebay.com. FIG. 1 shows a conventional screen 10 on a computer 1100 of FIG. 11. In the ebay.com auction, bids are accepted until a fixed time out 100 which is set by the person 104 (i.e., seller) auctioning an item 105 (i.e., description). As shown by element 110, a current bid for the item 105 is shown as well as a bid increment 120. Hence, in the example of auctioning off a Colorado map in FIG. 1, the minimum bid 130 is the sum of the current bid 110 and the bid increment 130. The current high bidder is identified 106. Ebay.com has a bidding feature 140 called “proxy bidding.” This feature results in ebay.com automatically bidding on the bidder's behalf. When a bidder places a maximum bid 142, the software 1150 keeps the maximum bid secret and only uses a portion of the maximum bid to overcome the current minimum bid 130. Hence, in the example of FIG. 1, and assuming no other maximum bid is in place, then the entry of a $13 maximum bid 142 by bidder X, results in a new screen 10 showing a current bid 110 of $10.49, an increment of $0.50 and a new minimum bid 130 of $10.99. Bidder X is also identified in field 106.
FIG. 2 shows an example of the operation of this prior art approach on a time line 200 based on FIG. 1. In FIG. 2, at time T1, the current bid 110 ($9.99), bid increment 120 ($0.50), and minimum bid 130 ($10.49) are displayed on the monitor 100 of a prospective bidder X. At time T2, a maximum bid 142 ($13.00) is entered by bidder X. At time T3, the proxy bidding software determines and displays the new current bid 110 ($10.49), bid increment 120 ($0.50), and new minimum bid 130 ($10.99). At time T4, bidder Y places a maximum bid 142 of $15. At time T5, the current bid 110 rapidly goes to $13.50. The reason for this is that the proxy bidding software feature 140 of causes bidder Y to outbid the maximum bid ($13.00) of bidder X (by $0.50). While proxy bidding works well in the time period well before the end 100 of the auction, as the auction approaches the end 100, there may be several prospective bidders waiting at their computers 1100 to actively bid. When time 100 occurs, bidding is over.
In this environment, the seller 104 of the item may not receive the full value for the item 105 being auctioned. This is illustrated in another example in FIG. 3, bidder X, at time T1, bids $50 for an item having a bid increment 120 of $5.00. Bidder Y sees the new minimum bid 130 of $55.00 and, at time T2, bids $70. The software 140 determines and displays a new minimum bid 130 of $60.00. Bidder X bids $100 and bidder Z bids $90 at about time T3—both racing to enter bids just before the end occurs at time 100. It is to be understood that bidders are accessing 1130 the auction service 1140 over the Internet 1120 and that delays in Internet servicing can occur which may disrupt the bidding process. In any event and in this example, times T1, T2, and T3 are shortly before the end 100 of the auction. The processing software 140 for the auction processes bidder X's and bidder Z's bids with respect to bidder Y in the fashion described in FIG. 2, and when time 100 occurs, bidder X receives the winning bid $95.00 at time 100 (i.e., $5.00 above bidder Z's bid of $90). Because of the time deadline 100, no further bidding occurs even if bidders X, Y, and Z want to.
Hence, bidders X, Y, and Z may actually be dissatisfied, as they may want to continue bidding. Furthermore, the last bids at T3 (i.e., just before the end 100) may well represent guesses by the bidders. And the owner of the item 105 does not necessarily receive the highest price for the item. Finally, the auction service is denied greater profits since such services are usually compensated based on the final price.
A need exists to emulate true auctioning in Internet auctions wherein in real life auctions, bidders X, Y and Z would be able to continue to outbid each other. In mass auctioning of items over the Internet, this type of real world goal has not been achieved.